Airbnb downgraded, Shopify slashed on valuation concerns: 4 big analyst cuts

Investing.com — Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Airbnb, Shopify, GoPro, and Expedia.

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Airbnb falls on Barclays downgrade

Barclays downgraded Airbnb (NASDAQ:ABNB) from Equalweight to Underweight with a price target of $100.00 (from $135.00). As a result, shares fell nearly 2% pre-market today.

This shift in rating marks the fourth downgrade Airbnb has received since the company announced its Q3 earnings in early November.

Shopify slashed to Sell

DZ Bank downgraded Shopify (NYSE:SHOP) to Sell from Hold with a price target of $65.00 (from $62.00), as reported in real-time on InvestingPro.

Last week, Shopify hosted its Investor Day, which elicited varying responses from analysts. Citi described the event as a "slight incremental positive," yet they expressed concerns about the risk/reward outlook leading into 2024. This caution stemmed from Shopify's valuation returning to near-term highs, leading Citi to view it as not particularly attractive.

Similarly, Wedbush adjusted its rating for Shopify last week, downgrading it from Outperform to Neutral, primarily due to concerns over the company's valuation.

Two more downgrades

Morgan Stanley downgraded GoPro (NASDAQ:GPRO) to Underweight from Equalweight and cut its price target to $3.00 from $4.00. As a result, shares dropped more than 5% pre-market today.

Morgan Stanley's commentary highlighted several concerns leading to the downgrade. The analysts believe GoPro faces significant challenges in 2024, including the high expectations set against a backdrop of a business model transition and inconsistent execution, decelerating subscriber growth, and EV/EBITDA valuation that is two standard deviations above the long-term average.

Barclays downgraded Expedia (NASDAQ:EXPE) to Equalweight from Overweight with a price target of $150.00 (from $136.00). Shares fell more than 1% pre-market today.

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